Press Release


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Higher Ed Board adopts universities' budget cut plan, approves Summer '10 tuition

PORTLAND, January 8, 2010 – The State Board of Higher Education (the “Board”) met today at Portland State University to review budget reduction plans for campuses and the system, Summer 2010 tuition, fee and housing rates, and budget “settle-up” and retention incentives for campuses, among other items discussed by the Board.

Budget Reduction     Oregon University System Chancellor, George Pernsteiner, said that all state agencies were asked to provide to the Legislative Fiscal Office 5% and 10% budget reduction plans, because of the current economic conditions and the potential revenue consequences of the January 26 special election. He said that the OUS is long past the time in which we can say that the campuses can absorb cuts without obvious impacts. At a time of record enrollment growth and demand for higher education – and as Oregon is facing the largest graduating high school class in its history – we also face the possibility of having to restrict enrollment at some campuses in the coming Fall if budget cuts are made to higher education in the February session. Students currently in the system will be protected, but there will not be the ability to fully meet enrollment demand if OUS has to take cuts to the 2009-2011 budget. “We are not closing the doors on Oregonians, but we may not be able to serve all of the students who apply,” said Pernsteiner.

Jay Kenton, OUS vice chancellor for Finance and Administration, said that for the 20010-11 academic year, a 5% cut would be a budget reduction of $37.6 million for OUS, and would have impacts in every county in Oregon, including: loss of capacity to serve about 900 in-state students (new freshmen and transfers); a loss of 267 FTE employees (faculty and staff); reductions in support for instructional, research and public service activities; and the cuts will have multiplier impacts on the economy in Oregon communities of $49.2 million from reductions in employment and spending. A 10% cut would be about $75.2 million in budget reductions, a loss of capacity to serve 3,000 new and transfer students across the state, a loss of 651 FTE employees (faculty and staff), and negative economic multiplier impacts to communities of $119.8 million. The impacts of the cuts will vary by campus, and could include fewer courses and class sections, but will not lead to any mid-year tuition increase. The board voted to adopt the budget reduction plan, asking that it be submitted to LFO.

Enrollment Settle-Up & Retention Incentives    Jay Kenton said that the 2009-10 enrollment settle-up and distribution of retention incentives are based on actual 2009-10 enrollment at the end of fall term 2009, adjusted from projections made earlier in the fall, and fall 2008 to fall 2009 retention information. Kenton described the information which drives the distribution of the $6.6 million from OUS reserves, of which slightly over $4 million was used to provide settle up between projected to fundable enrollment for the current academic year, with an additional $1.67 million for funding enrollment prior to the current year; and just over $1 million to incentivize improved retention rates from freshmen to sophomore levels. Enrollment settle up and retention incentives combined provided the following funding increases for campuses: Eastern Oregon University = $786,363; Oregon Institute of Technology = $161,766; Oregon State University = $2,723,515; OSU-Cascades = $144,419; Portland State University = $1,320,782; Southern Oregon University = $38,389; University of Oregon = $906,708; and Western Oregon University = $514,557.

Summer 2010 Tuition     Brian Meara, OUS assistant vice chancellor for budget operations, reviewed the recommendations for Summer 2010 tuition and fees, and for housing rates, which were then approved by the Board. Below are the rate increases for undergraduate and graduate students for Summer 2010 at the 12 credit hour rate. For all Summer Session rates please see: The Board also approved the amendment of OAR 580-040-0040, Approval of the 2009-10 Academic Year Fee Book as a permanent rule.

Oregon University System Summer Session Tuition and Fee Rates for 2010 (Resident students)
Annual Rate for 12 credit hours


Summer ‘10 Undergraduate Tuition & Fees

% increase or decrease from 2009

Summer ‘10 Graduate Tuition & Fees

% increase or decrease over 2009
















OSU-Cascades Campus (Bend)

























SYSTEM AVERAGE (unweighted)





*The PSU rate includes a new Recreation Center fee to support the operations and debt service of its new recreation center.

**The UO rate includes an increase in its Recreation Center fee to match the academic year rate.


In other action and discussion at the meeting, the Board and/or its Committees:


The Oregon State Board of Higher Education, the statutory governing board of OUS, is composed of twelve members appointed by the Governor and confirmed by the Oregon State Senate. For additional information, go to


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